NAI Capital

Securing Commercial Expansion Space Without Paying For It

Securing Commercial Expansion Space Without Paying For It By Forrest Blake, Senior Vice President of SVN Commercial - Phone 310-850-2381 - CalBRE Lic # 01054174 If your company expects to grow at some point during the lease term, you’ll want to negotiate a must-take provision. This lets you lock in expansion space rights upon the start of the lease. For example, if a tenant signs a lease for 1½ floors but knows half a floor will sit empty until next year, I’ll negotiate a must-take expansion for that space in 12 months. The tenant effectively gets free rent for half a floor over...

Read more...

Commercial Lease Total Rent Exposure Part 4

Commercial Lease Total Rent Exposure Part 4 By Forrest Blake, Senior Vice President of SVN Commercial - Phone 310-850-2381 - CalBRE Lic # 01054174 In our last video, we discussed how parking space and after-hours HVAC impact your effective rent. Let’s now look at more factors affecting your total occupancy cost. My team works hard with the tenant to get the most concessions. These are items deducted from the total occupancy costs over time to establish an effective rent. Examples include beneficial occupancy, free rent, free parking, tenant improvements, and moving allowances. https://youtu.be/tC09k8mIV8E If...

Read more...

Commercial Lease Total Rent Exposure Part 3

Commercial Lease Total Rent Exposure Part 3 By Forrest Blake, Senior Vice President of SVN Commercial - Phone 310-850-2381 - CalBRE Lic # 01054174 Decision makers must have a clear picture of the total occupancy cost to eliminate surprises and to maintain cash flow and profitability. An accurate budget with both variable and fixed expenses will help the team make the right decision between staying in the current building or relocating. In our last video, we focused on the impact of property tax increases on your total occupancy cost or effective rent. Let’s now look at parking space...

Read more...

Commercial Lease Total Rent Exposure Part 2

Commercial Lease Total Rent Exposure Part 2 By Forrest Blake, Senior Vice President of SVN Commercial - Phone 310-850-2381 - CalBRE Lic # 01054174 Due to the many components that make up the true cost of a leased space, identifying and budgeting for it can be difficult. Factor in landlord concessions and you arrive at what’s called “effective rent.” In this video we’ll look at the impact of tax increases. A rapid increase in property values and when exactly the landlord sells the building may dramatically impact the tenant’s expense. For example, a building purchased years...

Read more...

Highrise Networks

In 2015, I found myself alone and ISOLATED. It had been two years since I’d sold my golf teaching company and returned to Commercial Real Estate. The only good news is that I’d learned the benefit of carryover losses. No, it wasn’t billions like some people we know. The plans to fill up the 10,000 square feet office on the 45th floor of Gas Company tower here in DTLA hadn’t come to screeching halt. My company was on the path to merge with another major company and no longer was growing the office. My 400-square foot office only made me feel more alone in the large suite. My quest to develop...

Read more...

NEW LEASE ACCOUNTING IS A NIGHTMARE

NEW LEASE ACCOUNTING IS A NIGHTMARE Presented by: Forrest Blake | Senior Vice President | SVN Commercial | 310-850-2381 | Lic # 01054174 WHAT IS HAPPENING? Financial Accounting Standard Board (FASB) has created new guidelines on how a company will report their lease obligations. Leases beyond twelve months will be required to be moved onto the balance sheet. Firms must record all future lease payments for the term of the lease as a liability at the start of the lease. Additionally, tenants will be required to include extension options. FASB TIME LINE POSSIBLE TROUBLE FOR TENANTS POSSIBLE...

Read more...

Office Space Is Getting Smaller

Office Space Is Getting Smaller Presented by: Forrest Blake | Senior Vice President | SVN Commercial | 310-850-2381| Lic # 01054174 Forrest Blake | Senior Vice President SVN | Commercial - DTLA 800 South Figueroa Street, Suite 925, Los Angeles, CA 90017 Phone 213.618.4196 | Mobile 310.850.2381 forrest.blake@svn.com | www.svn.com CalDRE# 01054174

Read more...

COMMERCIAL LEASES CHANGING TO A LIABILITY ON THE BALANCE SHEET IN 2019

COMMERCIAL LEASES CHANGING TO A LIABILITY ON THE BALANCE SHEET IN 2019 Presented by: Forrest Blake | Vice President | NAI Capital | 818-933-2365 | fblake@NAIcaptial.com | Lic # 01054174 Anyone who signs more than a 12-month lease and is in an executive position needs to read this and future articles on this subject. This change will have a dramatic effect on your financial statements. Tenant’s must book there lease obligation as a liability on balance sheet. I wouldn’t sign a new lease without understanding the impacts of these new requirements. The first time I wrote about this...

Read more...

INCREASING SUBLEASE SPACE CREATES LEVERAGE FOR TENANTS

Presented by: Forrest Blake | Senior Vice President | SVN Commercial | 310-850-2381 | Lic # 01054174 Los Angeles, CA, Tuesday, June 13, 2017– According to NAI Capital’s Market Trends report, office space offered for sublease in Los Angeles County in the first quarter of 2017 registered 4.9 million square feet, up 7.6% over the quarter and 11.5% over the prior year. The total inventory of available sublease space is increasing and is being absorbed at a lower rate. This quarter, 390,460 square feet were subleased, which is 22.1% less than a year ago. Sublease rents remained flat over...

Read more...

LA 1q15 Office Pipeline for Under Construction is VERY robust

The commercial real estate construction pipeline is very strong. This means there is plenty of money supporting the Los Angeles real estate market and development. It may also mean more vacancy and result in better deals in the older projects for tenants who are willing to compromise and negotiate. SUBMARKET UNDER CONSTRUCTION Submarket Downtown Los Angeles  3,226,298 West Los Angeles Beverly Hills 64,937 Brentwood 0 Century City 0 Culver City 55,000 Hollywood/Silver Lake 857,746 Marina Del Rey/Venice 407,422 Olympic...

Read more...